Nicknamed ‘the Garden State,’ New Jersey is known for many wonderful things. Chief among these are the miles of beautiful beaches where waves of the Atlantic caress the shore, stretches of untouched nature in all its glory, and countless ways to be entertained.
While frolicking in nature and touring the state’s many cities is great fun, gambling is one of the most prominent forms of entertainment in the state. Considering Atlantic City—one of the largest gambling cities in America—is located in the state, this is no surprise.
The main reason for the success of the casinos in Atlantic City and the numerous online casinos available in the state is the relaxed laws surrounding gambling. In fact, New Jersey has some of the most forgiving gambling laws in the whole country.
Despite this, it is always best to know the law if you’re planning on gambling in the state. So, before you read an expert guide to NJ casinos, check out the overview of the gambling laws below.
What we cover
History of Gambling in NJ
One of the key things to know about the laws surrounding gambling in New Jersey is that they have existed for a while. While gambling was wholly prohibited in the country from 1910 until 1931 (when Nevada became the first state to legalize the pastime), NJ has allowed gambling in some forms since 1939.
At this time, pari-mutuel horse race betting was legalized, and gamblers could place legal bets on the outcomes of races. This was, for a long time, the only type of legal gambling until 1976, when 81.5% of NJ residents voted to allow other forms of gambling.
After new laws, specifically the New Jersey Criminal Law (section 2C:37-1 and 5:5-1), were finalized, the development of casinos in the now famous Atlantic City was given the green light alongside a state lottery.
Things remained primarily unchanged until 2011, when a new bill to legalize online gambling was presented. The bill was turned down after a veto against it by Governor Chris Christie, who claimed it violated the state’s constitution.
A year later, in 2012, sports betting was legalized. However, after legal battles against the NBA, NFL, MBL, NHL, and NCAA, it was prohibited a short while later. To help the industry grow, a similar iGaming bill presented in 2011 was brought to the government again—this time being signed into law by none other than Governor Chris Christie.
As online casinos launched—including many operated by physical casinos in Atlantic City—more players started playing online. However, those wanting to place wagers on their favorite sports constantly mentioned the lack of sports betting.
After the Supreme Court ruled that states could draft their own gambling laws in 2018, the state again legalized sports betting. This again opened the market to the flood of players waiting in the wings to place their bets.
New Jersey Criminal Law
Regarding what legislation oversees gambling in the state, almost all gambling-related laws can be found in the New Jersey Criminal Law. However, this law doesn’t make provisions in the same way that many others do.
In simple terms, the main aspect of the law is to ensure that no gambling takes place in the region unless the state regulates it. Therefore, the law sets up a framework wherein all gambling operations in the area must apply for a license and be authorized and regulated by the state under the Division of Gambling Enforcement.
More than this, the law doesn’t victimize or persecute players for gambling illegally—a vastly different approach from what many other states and countries around the world take. Instead, the law focuses more on the operators of illegal gambling.
Because of this, even players caught gambling at an unregulated or unlicensed online casino aren’t persecuted. Instead, those behind the casino or website are taken to task by the authorities for operating without the proper license.
Offshore Gambling
Because the law doesn’t persecute players, many international online casinos (or those that don’t operate within NJ) accept players from the state. If you’ve found an online casino you love that isn’t located within the state boundaries, you can still play on it.
However, it is strongly recommended that NJ players stick to those based in the region and avoid offshore sites. The justification for this is that the state cannot regulate these casino providers, and, therefore, the safety of your gameplay could be compromised.
If you’re willing to take the chance, always ensure you only use a reputable website properly licensed by another governing body (such as the UK Gambling Commission or Curaçao eGaming) and that it has positive reviews from previous players.
Legal Ages
Like anywhere, the law surrounding gambling in the state also stipulates who can and cannot gamble. This is done to ensure that only those mature enough to handle such thrills can participate and to protect those who are vulnerable to gambling addiction.
As such, only players over the age of 21 can access online casinos or visit any of the amazing casinos in the state—such as Borgata and Harrah’s Atlantic City. For bingo, pari-mutuel betting, or lotteries, anyone over 18 can participate.
Taxes
Considering America is home to some of the harshest taxes on casino winnings worldwide, it comes as no surprise that NJ also taxes whatever winnings you may be lucky enough to gain. These are paid directly to the IRS (in most cases) and must be declared on a W-2G tax declaration.
Aside from federal tax at 24%, a 3% state tax is levied against winnings. This 27% total would take a rather large chunk out of your windfall. However, it should be noted that working on a strict 27% basis may not be entirely accurate.
The final amount of tax payable will depend on your regular annual income and other factors, such as whether or not you are married. All these things play a part in calculating the final amount you owe, so you should contact a tax consultant who will ensure you stay above the law should you win a significant prize.
